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I
116TH CONGRESS
2D SESSION
H. R. 8989
To require the Securities and Exchange Commission to conduct a study
on the feasibility, benefits, and costs of using a distributed ledger system
in the post-trade clearing and settlement process, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 16, 2020
Mr. LYNCH (for himself and Mr. EMMER) introduced the following bill; which
was referred to the Committee on Financial Services
A BILL
To require the Securities and Exchange Commission to con-
duct a study on the feasibility, benefits, and costs of
using a distributed ledger system in the post-trade clear-
ing and settlement process, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. STUDY ON THE USE OF A DISTRIBUTED LEDG-
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ER SYSTEM.
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(a) IN GENERAL.—Not later than 1 year after the
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date of the enactment of this Act, the Securities and Ex-
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change Commission shall conduct a study on the feasi-
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bility, benefits, and costs of using a distributed ledger sys-
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tem in the post-trade clearing and settlement process.
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(b) CONSULTATION.—In conducting the study under
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subsection (a), the Commission staff shall consult with do-
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mestic and international stakeholders.
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(c) CONTENTS OF THE STUDY.—The study required
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under subsection (a) shall include—
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(1) an identification of the key operational and
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regulatory challenges and opportunities that could be
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caused by the use of a distributed ledger system in
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the post-trade clearing and settlement process;
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(2) an identification of practices from domestic
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and international models that use a distributed ledg-
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er system in the clearing and settlement process;
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(3) an identification of the processes and enti-
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ties that could be disintermediated by the use of
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such system in such processes;
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(4) an identification of the potential steps for
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establishing international standards for, and global
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continuity of service in the transition to, the use of
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such system in such processes;
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(5) an identification of the implications of the
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use of such system in such processes on—
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(A) investor protection, capital formation,
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and market efficiency; and
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(B) the establishment of international
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standards; and
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(6) an assessment of whether the Commission
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should implement a pilot program to use such sys-
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tem in such processes.
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(d) REPORT REQUIRED.—
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(1) IN GENERAL.—Not later than 1 year after
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the date of the enactment of this Act, the Commis-
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sion shall submit to Congress a report on the find-
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ings and determinations of the study required under
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subsection (a).
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(2) UPDATE.—Not later than 1 year after the
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date on which the report under paragraph (1) is
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submitted, the Commission shall submit to Congress
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a report that updates the findings and determina-
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tions of the report submitted under such paragraph.
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(3) CONTENT.—In submitting the reports re-
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quired under paragraphs (1) and (2), the Commis-
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sion may not include confidential information.
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Æ
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